Liability Limits and Large Loss Trends
The liability insurance landscape is shifting rapidly, and the changes are being felt across industries. Chubb’s 2025 benchmark report highlights a clear trend: escalating jury awards and higher liability limits are reshaping how businesses must think about their exposure to risk.
Escalating Jury Awards One of the most striking findings in Chubb’s report is the continued rise in jury verdicts. Large awards — sometimes referred to as “nuclear verdicts” — are becoming more common, with settlements and judgments frequently reaching tens of millions of dollars. This escalation is driven by factors such as litigation funding, social inflation, and juries’ increasing willingness to award damages for pain, suffering, and punitive claims. Higher Liability Limits Across Industries In response to these developments, liability limits are rising across the board. Companies in sectors ranging from manufacturing to retail are reassessing how much coverage they carry. Chubb’s benchmark data shows that many organizations are purchasing higher limits than in previous years, reflecting the need to protect against the possibility of catastrophic losses. National Implications While some of the largest verdicts have occurred in traditionally litigious jurisdictions, insurers are applying lessons nationwide. Underwriters are recalibrating their models to account for the possibility of outsized losses in any venue. As a result, liability insurance buyers across the U.S. are seeing changes in pricing, terms, and expectations.
Buyer Takeaway The message from Chubb’s 2025 benchmark report is clear: escalating jury awards and higher liability limits are reshaping the liability insurance market. Businesses should reassess the adequacy of their coverage in light of rising verdicts and settlements. Ensuring that liability limits align with today’s risk environment is essential to maintaining financial protection in an era of increasingly costly claims
For businesses, this means liability claims are not only more frequent but also more severe. Even industries traditionally considered lower risk are seeing higher verdicts, underscoring the broad impact of this trend.
This shift is not limited to large corporations. Mid sized businesses are also increasing their liability limits, recognizing that a single large claim could threaten their financial stability.
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Liability Limits and Large Loss Trends
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